Tourism is now recognized as being an economic activity of global activity activity. This complex and multi-faceted industry plays an important role in the economies of many developed and less developed countries. Although the impact of tourism industry on economic life is generally positive, the economic costs are not insignificant. Additionally, the economic benefits of tourism may be offset by adverse environmental and social consequences. The measurable objective of this course is to give the macroeconomic picture of tourism’s role within national economies using the fundamental concepts learned in introductory economics courses, with specific reference to the Turkish case. Since socio-cultural and environmental impacts also form an essential part of the evaluation of the long-term advantages and disadvantages of tourism development, these issues will also be covered in some detail.
Tourism is a significant business sector for both Hampton Roads and the State of Virginia. Each year, travelers spend approximately $2 billion in the region. Furthermore, tourism constitutes over 20 percent of state sales taxes and one could reasonably expect this figure to be even higher in Hampton Roads.
There are both advantages and disadvantages to having such a large tourism sector. One disadvantage is that wages in tourism related industries tend to be lower than in other sectors of the economy. Moreover, Hampton Roads' mature tourism economy is growing slowly. In fact, during the period 1988 - 1996 real travel expenditures actually declined by 5%.
Tourism, however, does have certain advantages. Although it is generally lower paying than other industries, it does serve to provide jobs for lower skilled workers thereby increasing the region's overall labor participation rate. This phenomenon has a tendency to actually raise per capita incomes as workers who otherwise would be unemployed are pulled into the labor market.
There are things a region can do to...